Cryptocurrency wouldn’t exist without miners, and Marathon Digital (NASDAQ:MARA) is among the best-known mining companies on the Nasdaq exchange. MARA stock earns a “B” grade and isn’t appropriate for everyone.
However, like crypto itself, Marathon Digital is fascinating and might reward its long-term investors handsomely.
Marathon Digital’s name is appropriate, as investing in digital assets should be viewed as a marathon, not a sprint.
Yet, there are risks involved with some blockchain-based businesses, sometimes even including legal challenges. With that in mind, let’s get into the nitty-gritty of the notable crypto-mining startup known as Marathon Digital.
MARA Stock Could Be a Worth Considering
While plenty of folks are interested in Bitcoin (BTC-USD), not everyone wants to bother with cryptocurrency wallets and exchanges. Plus, some investors are restricted from buying and selling Bitcoin in their retirement accounts.
Currently, there is no publicly traded spot Bitcoin exchange traded fund. Yet, MARA stock might be considered a worthy proxy for cryptocurrency because it tends to follow the Bitcoin price.
There isn’t a perfect one-to-one price correlation, but the two assets move in similar directions much of the time.
Marathon Digital deploys efficient and geographically diversified mining operations. The company seeks to build “one of the largest, most energy efficient, and most technologically advanced Bitcoin mining companies in the world.”
Marathon Digital will provide a quarterly update on Aug. 8. So, keep an eye out for that. In the meantime, you can read Marathon Digital’s June update, which is quite impressive.
Believe it or not, the company produced 979 Bitcoins in June of 2023, up 599% compared to the output from June of 2022.
Marathon Digital May Have Legal Problems
It’s good to know that Marathon Digital is aggressively ramping up its cryptocurrency mining operations. However, unfortunately, there may be some legal issues for Marathon Digital and its stakeholders to consider.
This is a perfect example of why it’s important to scour news and informational websites before making any investment. Reportedly, Marathon Digital is facing a legal complaint in a Nevada court.
The complaint alleges that Marathon Digital “repeatedly and consistently
obfuscated the truth to investors about Marathon’s business, operations, and prospects.” This, allegedly, included withholding “the Company’s true revenue figures from investors.”
You’ll definitely want to stay tuned to find out how this case resolves. Legal proceedings and/or settlements can be costly and time-consuming for all parties involved.
Plus, there may also be other legal issues facing Marathon Digital, such as this one. If this is a deal-breaker for you, then you might choose not to invest in Marathon Digital.
MARA Stock: Position Sizing Is the Key
You may stay the course with Marathon Digital because you’re seeking an investable, crypto-associated asset while no spot Bitcoin ETF is available. If so, you’re encouraged to conduct your due diligence on Marathon Digital.
It’s crucial to watch for news items pertaining to Marathon Digital, including legal developments. There’s some risk involved if you’re invested in Marathon Digital, so any share position should be small.
Still, in the final analysis, Marathon Digital is an active cryptocurrency miner that should garner the interest of some financial traders. Thus, MARA stock gets a “B” grade and may be appropriate for a moderately sized share position.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
